DOGE dips towards $0.05900 support level despite comments from Elon Musk - Reuters

DOGE dips towards $0.05900 support level despite comments from Elon Musk – Reuters

Dogecoin was down for a third consecutive session, although Elon Musk said earlier this week that Tesla still holds the token. Polygon was also down, dropping almost 10% to start the weekend, as cryptocurrencies fell back into the red on Saturday. At the time of writing, the global crypto market cap is trading down 4.81%.

Polygon (MATIC)

Polygon (MATIC) fell nearly 10% to start the weekend as bearish pressure intensified in crypto markets.

Saturday saw the token slide to an intraday low of $0.8236, just days after approaching a break above the $1.00 mark.

Today’s decline comes as the bears now appear to be targeting a low of $0.7250, which was hit last Sunday.

MATIC/USD – Daily Chart

The recent declines in MATIC/USD have come on the back of the Relative Strength Index (RSI) hovering deep in overbought territory.

The index hit a resistance point of 79.39 earlier in the week, which was the highest reading for the indicator since October 2021.

On top of that, after crossing at the end of June, the 10-day (red) and 25-day (blue) moving averages appeared to have peaked, which could signal further downward moves in the coming sessions.

Dogecoin (DOGE)

Dogecoin (DOGE) made headlines this week as Tesla CEO Elon Musk confirmed that the company still holds its holdings in the same coin.

However, since then, prices for the token have fallen in consecutive sessions, with today’s drop pushing DOGE/USD to a low of $0.06639.

Overall, the token is still up 7.34% from the same time last week, which came after surging to a weekly high of $0.0775 on Thursday.

DOGE/USD – Daily Chart

Similar to MATIC, DOGE’s price declines began once a high of 57 was reached in the RSI indicator, opening the door for the bears to return in the process.

If the momentum continues to decline, we could see the coin even fall back to its long-term support point of $0.05900.

There is, however, some hope for the bulls in the form of the 10-day moving average (red), which should cross the 25-day trendline, which could help resuscitate price strength.

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Could we see dogecoin falling to lows of $0.05900 in the next few sessions? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings an eclectic perspective to market analysis, having worked as a brokerage manager, retail educator, and market commentator in crypto, stocks, and FX.




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